Find the net present value for a project that would yield

Assignment Help Financial Management
Reference no: EM13804304

1. A project proposal stated that it would provide at least $20,000 in annual returns for the next 3 years but requires an initial investment of $50,000. Will its approval be worthwhile if the cost of capital is 8%?

2. Find the net present value for a project that would yield $25,000, $35,000, $30,000, and $40,000 in the first 4 years of operation if the interest rate is 9.5% and the initial investment is $80,000.

Reference no: EM13804304

Questions Cloud

What is the annual percent yield per share : On January 15, 2013, A common stock sells for $82 per share, has a growth rate of 7% and a dividend that was just paid of $3.82 in December 2012. What is the annual percent yield per share?
What should be the current market price per share : Kennebunk Manufacturing is expected to pay a dividend of $8 per share next year. The dividend growth rate is expected to continue to be 3%. Required rate of return is 7%. What should be the current market price per share?
What is the yield to maturity of the bond today : A corporate bond has a face value of $1,000 and an annual coupon interest rate of 7%. Interest is paid annually. 10 years of the life of the bond remain. The current market price of the bond is $1232. To the nearest 1/100 0f 1 percent, what is the yi..
What is external rate of return : A proprietor is considering a new investment of $1,000, with expected returns of 150 per year for 1st 3 yr, 1150 in 4th, MARR = 8%, What is external rate of return?
Find the net present value for a project that would yield : A project proposal stated that it would provide at least $20,000 in annual returns for the next 3 years but requires an initial investment of $50,000. Will its approval be worthwhile if the cost of capital is 8%? Find the net present value for a proj..
What is the difference in cash flow between the two firms : The Jupiter Corporation has a gross profit of $743,000 and $276,000 in depreciation expense. The Saturn Corporation also has $743,000 in gross profit, with $47,700 in depreciation expense. Selling and administrative expense is $164,000 for each compa..
About qualitative and quantitative risk analysis : Apply what you have learned about qualitative and quantitative risk analysis  to a scenario of your choosing Some examples would be home improvement project, changing jobs, vacation plans The purpose of this activity is to simplify the subject and as..
Order return probability : Calculate the expected return on an asset that has the following probable returns:
Minimum monthly payment of the outstanding balance : How long will it take Kate to pay for her furniture set if she chooses to pay only the minimum monthly payment of 2% of the outstanding balance? Her furniture set cost $3,750 financed at 19 3/4% annual interest.

Reviews

Write a Review

Financial Management Questions & Answers

  What will be your real and nominal return

What will be your nominal return over the two years if inflation is 3% in the first year and 5% in the second? What will be your real return? Now suppose that the bond is a TIPS. What will be your real and nominal return?

  What was the flotation cost as percentage of funds raised

The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $17.30 for each of the 15 million shares sold. The initial offering price was $21.00 per share, and the stock rose to $23.40 per share in the first few minutes of t..

  Homework help nguyen inc is considering the purchase of a

nguyen inc. is considering the purchase of a new computer system icx for 130000. the system will require an additional

  What is the probability that this stock

A stock had returns of 14 percent, 26 percent, and 8 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 43.51 percent in any one given year?

  What is the projected dividend for the coming year

Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 4 percent per year indefinitely. The required return on this stock is 10 percent,..

  Holding a well-diversified portfolio of assets

Explain why a firm needs to hedge if stockholders are holding a well-diversified portfolio of assets?

  Companies with rapidly growing levels of sales do not need

Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the firm.  Do you agree or disagree with this statement?  Explain.

  What is the value for average daily credit sale

Martin electronics has an accounts receivable turnover equal to 15 times. If accounts receivable are equal to 80,000, what is the value for average daily credit sale?

  Lower internal rate of return and profitability index

Why is it possible for investments to have a higher net present value than a competing investment but still have a lower internal rate of return and profitability index than that competitor?

  Financial analysis for managers

ou will also be expected to carry out horizontal analysis on the Income Statement using (2010 as base) and vertical common size analysis on the Statement of Financial Position (Balance Sheet) for 2 year.

  Write a 750- to 1050-word paper in which you describe a

write a 750- to 1050-word paper in which you describe a project you have managed personally or professionally. examples

  What is the portfolio beta-stock portfolio

You own a stock portfolio invested 25 percent in Stock Q, 30 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .75, 1.13, 1.14, and 1.31, respectively. What is the portfolio beta? (Do not round ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd